Shares of the Two Harbors Investment Corp. (TWO) stock were rising in the Pre-Market trading session today on June 17, 2021, following the news that Cardtronics plc (NASD: CATM) will be replaced by Two Harbors Investment Corp in the S&P SmallCap 600 before the opening of the trading session on Tuesday, June 22, 2021. TWO stock prices saw a push of 4.53% to reach $7.84 a share as of this writing. The stock went up by 0.54% at the previous closing. Let’s deep dive to explore more of it.
What’s Happening?
Two Harbors Investment Corp, founded in 2009, is working as an agency as well as a real estate investment trust(REIT). It seems that the TWO stock is continuing the previously built rising momentum in the stock market. The replacement of Two Harbors Investment Corp with CATM in the S&P SmallCap 600 is the key trigger behind this rising stock price. As NCR Corp. (NYSE: NCR) has already signed an acquisition agreement with Cardtronics, the acquisition is expected to be complete soon after customary closing conditions.
First Quarter 2021 Financial Results:
Back to the previous month on May 5, 2021, TWO stocks did announce the first quarter 2021 financial results according to which.
- Two Harbors Investment Corp recorded a book value of $7.29 per common share which represents a 2.2% quarter-based return on book value.
- Roughly $48.5 million income was generated in the recently reported quarter which represents a 9.3% annualized return on average common equity.
- Core earnings for the TWO stock were $45.8 million in the first three months of 2021.
- TWO stock announced a $0.17 per share dividend in the first quarter of 2021.
Efforts for Optimized liability and Capital Structure:
- Two harbors issued 5-year convertible seniors notes worth $287.5 million.
- $143.7 million principal amount of convertible senior notes due 2022 had been repurchased and retired by Two Harbors Investment Corp.
- Redemption of $75 million and $200 million series D and E respectively preferred shares had been completed by Two stock.
- The funding capacity of Two Harbors Investment Corp had been expanded via the closing of a $300 million MSR asset financing facility.
Conclusion:
TWO stock is hot among investors as far as market sentiment is concerned but every rise is followed by the fall and vice versa as the stock market is unpredictable. So, investors need to know the nitty-gritty of the stock before making any decision.
